Compound Annual Growth Rate Calculator

Enter starting value, ending value, years to find cagr. CAGR = (end/start)^(1/t)−1.

INPUT & RESULT

How the result changes

Starting value (currency units)Current: 1,000 → 7.18 %

Only starting value changes; all other inputs stay at your current values. The line illustrates the formula across the shown range. This is not a forecast of real-world outcomes.

About this calculation

Compound Annual Growth Rate: find cagr from starting value, ending value, years. Return measures compare investment outcomes with the initial amount; CAGR additionally accounts for the number of years.

Formula

CAGR = (end/start)^(1/t)−1

Worked example

With Starting value: 1000 currency units, Ending value: 2000 currency units, Years: 10 years, cagr is 7.18 %.

Calculation method

The rule is CAGR = (end/start)^(1/t)−1.

CAGR is the constant annual rate that would turn the starting value into the ending value over the chosen number of years. Actual year-by-year returns may vary.

For this compound annual growth rate example, changing starting value from 1000 currency units to 1001 currency units while keeping the other inputs fixed changes cAGR from 7.18 % to 7.17 %.

Reading cAGR

ROI is gain relative to cost, while CAGR is an annualized equivalent growth rate. The two are not interchangeable for different holding periods. In the worked values on this page, starting value 1000 currency units, ending value 2000 currency units, years 10 years produce cagr 7.18 %.

Practical use

Use the results to compare simplified investment scenarios on the basis stated by each formula. The specific task here is to find cagr from starting value, ending value, years.

Limits and common mistakes

Fees, taxes, interim cash flows, and risk are not represented unless included in the amounts you enter. Verify starting value in currency units before interpreting cAGR; a value measured on another basis would answer a different question.

Read the example and units

The worked values on this page use starting value 1000 currency units, ending value 2000 currency units, and years 10 years. With those exact entries, the calculator reports cagr 7.18 %. The output describes cagr under the displayed equation. It does not automatically include a separate cost, rate, or quantity absent from the listed fields. Keep all money amounts in one currency and check which amount is the base of a percentage. The displayed rule uses only the rate, amount, term, or count you supply; it does not import a market price, account balance, receipt rule, or contract term.

Compare one changed input

For a second scenario, change only starting value 1000 currency units to starting value 1100 currency units and leave the other example entries alone. The result for cagr changes from 7.18 % to 6.16 %. Comparing one changed input at a time shows exactly which assumption drove the difference in this calculation. This comparison isolates the arithmetic effect of one assumption. Actual fees, contract terms, taxes, behavior, or market outcomes may change a real result, so compare several plausible inputs rather than relying on one precise-looking number.

How to interpret this kind of result

Return on investment compares gain with the starting cost, while compound annual growth rate translates a start and end value into an equivalent annual growth path. They answer different questions, especially when holding periods differ. Record whether the ending amount includes dividends or other cash received so that the numerator matches your intended comparison. For this compound annual growth rate calculation, starting value in currency units, ending value in currency units, and years in years determine cagr; the displayed cagr 7.18 % belongs to that exact combination rather than to a different rate, term, or measurement basis.

Scope and practical checks

These formulas do not model the timing of interim cash flows, fees, taxes, or risk. Two investments can show the same simple return while exposing the investor to very different paths and losses. Use the calculation as a first arithmetic comparison and examine statements or records for a complete performance measure. Check the starting value in currency units, ending value in currency units, and years in years entries against the quantities in your own situation before using cagr; this page cannot infer a field or condition that you did not enter.

Common questions

What does this compound annual growth rate result include?

The cagr comes from starting value in currency units, ending value in currency units, and years in years using the displayed rule CAGR = (end/start)^(1/t)−1. It does not automatically include a condition absent from the listed inputs. Check the applicable account, transaction, or contract terms before using it for a financial decision.